December 27, 2017
Since our February 28, 2017 letter to you, California Proton Treatment Center, LLC (the “Company” or the “Debtor”) has worked hard to address its capital structure and contractual obligations while continuing to provide cancer care to patients at its proton therapy cancer treatment center in San Diego, California (the “Center”). In March 2017, the Company filed court papers initiating a reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. As a part of the bankruptcy proceeding, the Company addressed its relationship with Scripps Clinic Medical Group and Scripps Health (“Scripps”). As a result of these efforts, the Company entered into a Settlement and Transition Agreement with Scripps so that Scripps would no longer be the provider at the Center. Also, after working to identify other alternatives, the Company completed the sale of substantially all its assets free and clear of all liens, claims, encumbrances and interests to a newly formed entity named California Proton Therapy Center LLC which will continue to operate the Center as a going concern (see www.californiaprotons.com). This sale was approved by the Bankruptcy Court for the District of Delaware on December 7, 2017.
On December 13, 2017 the Bankruptcy Court also entered an order dismissing the Debtor’s Chapter 11 case and authorized the dissolution and winding up of the Debtor. Accordingly, pursuant to sections 18-203, 18-801 through 18-803 of the Delaware Limited Liability Company Act, the Debtor will execute and file all documents to take all actions that are necessary and proper to effectuate and consummate its dissolution and winding up (including the filing of a certificate of cancellation) in accordance with the laws of the State of Delaware.
As a result of these actions, any equity investment in the Company is deemed worthless as of December 7, 2017 and Carl Marks, in its capacity as Chief Restructuring Officer, plans to deliver to you the Schedule K-1’s pertaining to your membership interests in the Company in a timely manner.
Chief Restructuring Officer
California Proton Treatment Center, LLC
CPTC Contact Information:
Partner, Carl Marks Advisors
Managing Director, Carl Marks Advisors
More details about the reorganization process itself can be found at www.deb.uscourts.gov (case # 17-10477).